Explain and apply empirical Bayesian estimation in the nonparametric and semiparametric cases.
Free SOA Exam ASTAM (Advanced Short-Term Actuarial Mathematics) lesson in Credibility. 13 min read, ~1,943 words.
Nonparametric EB estimates EPV and VHM from data with no assumption on the conditional distribution. Equal sample sizes: is the pooled within-group variance; is the between-group variance minus. Bühlmann-Straub (unequal exposures ) replaces simple means with exposure-weighted means and uses. Semiparametric EB assumes a conditional form (almost always Poisson) and...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 5c
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